Nuclear Winter for NBA Basketball
By Benjy Lipsman in News on Nov 15, 2011 4:00PM
Well, NBA fans, it looks like any chance of a quick resolution to the four-month lockout flew out the door on Monday, after players voted to reject the league's supposedly last and final offer(PDF of offer here). They also began the process to de-certify their union and setting the stage for a court battle. Given the time table for such a resolution, the entire 2011-12 season is in serious jeopardy.
While players took home 57 percent of league revenue as salaries under the previous collective bargaining agreement, ownership refused to budge past 50 percent of basketball related income this time around, along with other changes to the collective bargaining agreement that further restricted players ability to seek top dollar for their talents. These changes included salary cap exceptions and higher luxury tax rates for teams over the cap. While the league justified their stance by claiming that 22 of 30 teams lost money last year, owners seemed to be trying to use the downturn in the economy to squeeze the players. There was also skepticism about the claims given the way owners can shift revenue to non-basketball income sources such as arena rental, television or concessions.
Union executive director Billy Hunter said after the player meeting in which the vote took place, "The players are not ready to accept the ultimatum. They thought it was completely unfair on the part of the NBA ownership and management. … We have negotiated in good faith for two years, but the players have felt they have given enough."
Commissioner David Stern, who represents ownership in the battle, took to the airwaves Monday afternoon to blast the players rejection of the offer. "When you negotiate for 2 1/2 years and finally get to where the parties are ... that's not an ultimatum. That's a proposal that's ready to be voted up or down," Stern said.
Now we wait for the two sides to take this dispute to court as the battle gets messier. Without a union to collectively bargain for the players, they are in theory individuals that the league must bargain with, which will add countless lawyers to the circus. Additionally, Stern threatened to void all player contracts if they chose this route, which were he to follow through, could result in 450 free agents.
The players will now file antitrust lawsuits claiming unfair labor practices while the league has already preemptively sued to prevent the union from de-certifying. We can expect to wait weeks, if not months, for the NLRB and courts to hear both sides and make their rulings. And those will simply set the groundwork for the next phases of the dispute. Stern referred to "nuclear winter" when on SportsCenter yesterday, and that just may be the case. The owners seemed content to lose the season and wait until the players feel the pain of a year without pay. The league's 30 owners don't have the age considerations players face, along with the fact they still own an asset of value even if it isn't actively bringing in much revenue today. If players thought these maneuvers on Monday might prompt a better offer from the league, then, as Stern said, "That's not happening." And sadly for the players, that just might be the case.
For fans, especially those with teams on the rise like our Bulls, this is incredibly sad, as well. With exciting young stars like Derrick Rose and Kevin Durant, along with compelling stories like the Miami Heat's "Big Three," the NBA was riding a wave of popularity. And in a cold climate where we spend a lot of time indoors during the winter, a big source of entertainment will be lost. The lack of NBA basketball and the contentious bickering between millionaires and billionaires may chase away fans who might never return. Meanwhile, players will begin exploring their options abroad -- and some may stay -- which will only further weaken the league once it returns to the hardwood.